From 1980 to 1990, the consumer price index (CPI) increased from 82.4 to 130.7. If a gallon of apple juice cost $0.95 in 1980 and the price of apple juice increased at the same rate as the CPI from 1980 to 1990, approximately how much did a gallon of apple juice cost in 1990? A. $0.56 B. $0.82 C. $1.51 D. $1.31
Accepted Solution
A:
Answer: C $1.51
To solve this, start with a proportion. Put the CPI numbers on the left and the apple juice prices on the right.
You will have:
82.4/130.7 = 0.95/x
Cross multiply to solve and you will get the price of the juice is $1.51.